Thomas Cook's summer bookings rise, winter in line
Staff Writer |
Thomas Cook reported a rise in bookings this summer across some destinations apart from Turkey, while demand for the winter is in line with the previous year.
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The travel agent said expectations for full year underlying operating profit remained unchanged.
Bookings were up 8% year -on-year, but excluding Turkey which has experienced low demand due to security concerns, bookings were down 4%.
The summer programme is 89% sold, 3% below the same period last year with high demand for destinations such as the Balearic and Canary Islands, the US, Bulgaria and Cuba.
In the UK, bookings rose slightly by 1% and charter risk average selling prices remained at 2% above last year, due to a shift towards premium destinations. UK average selling prices were down 5% due investment in the seat-only business, which has lower selling prices compared with package holidays.
Northern Europe bookings were 6% lower, which was in line with capacity cuts and against a strong performance last summer and pricing was up 3%.
In continental Europe, bookings are 9% lower due to weak consumer confidence, including in Belgium where demand was low due to the Brussels terror attacks. Overall pricing was 3% below last year's levels. In Germany, bookings were 6% lower but the company said it outperformed the wider tour operating industry.
For Condor or Airlines Germany, the company's subsidiary, bookings were down 3% and pricing was down 2% due to overcapacity and competition in the short and medium haul market, while the company took steps to move capacity away from Turkey.
For the upcoming winter the company said 27% of holidays were sold, which was consistent with the same period last year, and pricing is down 1%.
In the UK, bookings are up 8% and selling prices down 3%, due to a higher mix of seat-only bookings. In Northern Europe bookings are down 3%, with pricing down 1%.
While it is still early in the booking cycle for continental Europe, there was weak demand, particularly in Germany and Belgium.
For summer 2017 bookings are ahead across all markets, particularly in continental Europe and northern Europe while selling prices are ahead of last year. ■